CPI Europe AG — Earnings Release 2008

Sep 25, 2008

News Details

Corporate | 25 September 2008 07:31

IMMOFINANZ AG: Significant increase in operating profits – New strategic measures in a changed market environment

IMMOFINANZ AG / Quarter Results

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IMMOFINANZ AG results for the First Quarter of 2008/09

Significant increase in operating profits -
New strategic measures in a changed market environment

Revenues: +18.8% from EUR 152.9 m to EUR 181.6 m
Adjusted EBITDA: + 98.3% from EUR 50.2 m to EUR 99.6 m
Cash-flow: +124.4% from EUR 43.4 m to EUR 97.4 m
EBIT: EUR -190.7 m from EUR 183.0 m
EBT: EUR -119.4 m from EUR 171.3
NAV / share: -0.7% from EUR 11.30 to EUR 11.22
Development activities cut back sharply
Sales of EUR 800 m worth of investments in the IMMOFINANZ Group's portfolio

IMMOFINANZ AG operating profit continued to grow in the first quarter of
the 2008/09 business year (1 May 2008 to 31 July 2008). However, the final
results were heavily hit by a decrease in the valuation of subsidiary
IMMOEAST's property assets.

Revenues, Cash-flow, EBITDA
Key figures improved significantly: EBITDA adjusted for special effects
(incl. sales of property; companies) almost doubled, rising 98.3% from EUR
50.2 m to EUR 99.6 m. Cash-flow increased at an even stronger rate, up to
EUR 97.4 m from EUR 43.4 m the previous year, an increase of 124.4%.
Revenues increased by 18.8% from EUR 152.9 to EUR 181.6 m.

Rental income and property portfolio
Thanks to rising rents, significant improvements were made to rental
income. In an adjusted yearly comparison (like for like), rental income
rose by 4.6%. Total rental income climbed 18.8% from EUR 115.4 m to EUR
137.1 m. The fair market value of the company's property assets fell
slightly on the year, in the wake of cuts to the development pipeline,
which are in part reflected in the key figures.

EBT and EBIT
EBT fell from EUR 171.3 m to EUR -119.4 m, EBIT fell from EUR 183 m to EUR
-190.7 m. These significant decreases were the result of a downward
revision of the valuation of IMMOEAST's property portfolio. EUR 187.7 m
resulted from negative currency translation effects, which, whilst
appearing on the balance sheet are economically neutral for the company.
Market-related devaluations as a result of rising yields reached EUR 105.9
m. In total, revaluations at IMMOEAST resulted in a loss of EUR 293.6 m;
revaluations at IMMOAUSTRIA and IMMOWEST resulted in no net change.

NAV per share and book value per share
The net asset value per share declined slightly on the year by 0.7% to EUR
11.22 from EUR 11.30 the previous year. The book value per share was up
3.7% from EUR 9.11 to EUR 9.45.

Sales programme continues; cutbacks to the development pipeline
As a result of the noticeable effects of the global financial crisis on the
credit markets for project financing, a number of comprehensive measures
are being taken to ensure the company's long-term liquidity. In particular,
properties in the portfolio worth a total of EUR 800 m will be sold – split
equally between IMMOEAST on the one hand, and IMMOAUSTRIA and IMMOWEST on
the other. Furthermore, the development pipeline is being cut back,
resulting in a drop in outstanding construction costs from EUR 4.4 bn to
EUR 2.1 bn.
Similar measures will also be taken at IMMOAUSTRIA and IMMOWEST.
25.09.2008 Financial News transmitted by DGAP

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Language: English
Issuer: IMMOFINANZ AG
Bankgasse 2
A-1010 Wien
Österreich
Phone: 0043 /1/ 536 16 - 461
Fax: 0043 /1/ 536 16 - 491
E-mail: investor@immfinanz.com
Internet: http://www.immofinanz.com
ISIN: AT0000809058
WKN: 911064
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
Frankfurt; Foreign Exchange(s) Wien

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